The Personal Capital investment minimum is $100,000 as of 3Q2020. The Personal Capital investment minimum means how much is needed for a person to have Personal Capital manage its assets.
When Personal Capital lowered its account minimums at the end of 2015 to $25,000 from $100,000, the firm garnered plenty of favorable press as CEO Bill Harris spoke at length about democratizing access to financial advice.
But the hybrid financial advisor has raised its investment minimum back to $100,000 after surpassing $5 billion in assets under management as of 3Q2017.
As of 2020, Personal Capital now manages over $12.5 billion in AUM with over $800 billion in tracked assets by 2 million registered users of their free, award winning financial app.
Personal Capital says its digital wealth management offering is best suited for clients with at least $100,000 in assets. They are essentially targeting the mass affluent clientele.
It’s clear that the trend towards hybrid robo-advisory is gaining steam as competitors such as Vanguard Personal Advisor Services, Charles Schwab, Fidelity Go, Wells Fargo, and Betterment have all decided to go the hybrid route of algorithmic money management plus human advice.
The firm made no indication it would stop serving clients who subscribed with less than $100,000, instead stating that it would continue to offer free consultations with an adviser for any investor using its suite of free money management tools.
Personal Capital charges 89 basis points on the first $1 million under management, a level which is likely to come down due to increased competition. But given Personal Capital is the pioneer in hybrid robo-advisory, they’ve been able to offer the best client experience along with the most sophisticated free financial app today.
Personal Capital Detailed Overview
Total Equity Funding: $240.3M in 7 Rounds from 12 Investors as of 2018. Latest funding was $40M by IGM Financial, whom already invested $75M in 2017.
Headquarters: Redwood City, California with offices in Denver and San Francisco
Description: Personal Capital is the leading digital wealth management firm.
Founders: Bill Harris, Louie Gasparini, Rob Foregger
Categories: Financial Services, Wealth Management, Finance, FinTech
Free Sign up link: Personal Capital
Founded: July 1, 2009
Contact: firstname.lastname@example.org | (855) 855-8005
Employees: ~400 as of 2Q2020
Personal Capital is an online investment advisory platform that provides its clients with electronically facilitated wealth management services, objective advice, and strategies. Personal Capital’s charges are based on a percentage of assets managed by the platform, including wealth management, trade costs, and custody.
Personal Capital summarizes its users’ bank accounts, credit cards, mortgages, and other financial details together in one place. The platform also highlights its users’ long-term fiscal health over month-to-month spending with tools such as a visual graph of their investment allocation and a 401(k)-fee analyzer.
Personal Capital Management
Added Mike Arnsby as CTO in 2016. Mike helped take Yodlee public in 2015.
Personal Capital Funding History
Free Financial Tool Features
Personal Capital has the #1 free financial software on the web today. You don’t need to be a client to take advantage of tracking your net worth, x-raying your portfolio for excessive fees, and planning your retirement. Here are some of the tools key features, which can be accessed via your mobile device.
1) Retirement Planner. This tool helps you to know if you’re on track to retire, and even allows you to make adjustments for major life changes, such as job/career/income changes, illness, childbirth or saving for college.
2) 401(k) Fund Allocation. Even though Personal Capital can’t manage your employer sponsored retirement plan, they can analyze the plan and make asset allocation suggestions based on all of the investment options available in the plan.
3) Net Worth Calculator. Track your assets and liabilities so that you can quickly find your net worth at any time. This tool will help you to really know if you’re on track to reach your long-term financial goals.
4) Cash Flow Analyzer. Use this tool to create a budget, where you can track your income and expenses whatever the sources. This will help you see where you’re spending money, so that you can free up income for savings, investing, and debt payoff.
5) Investment Checkup tool. This can provide a risk assessment of your portfolio, including your retirement plan. It will make suggestions to help you improve your asset allocation plan to make it consistent with your goals and personal preferences.
Sign Up For Free Today
Personal Capital is an all-in-one financial management platform with an emphasis on successful investment management. You don’t need $100,000 to take advantage of their free financial tools because it’s absolutely free. I began tracking my net worth with Personal Capital in 2012 and have seen my net worth skyrocket since due to better financial optimization.
If you want to take advantage of the Personal Capital investment minimum, you are free to utilize Personal Capital to manage your money as well. I would first recommend you try their free tools.
About the Author: Sam began investing his own money ever since he opened an online brokerage account online in 1995. Sam loved investing so much that he decided to make a career out of investing by spending the next 13 years after college working at Goldman Sachs and Credit Suisse Group. During this time, Sam received his MBA from UC Berkeley with a focus on finance and real estate. He also became Series 7 and Series 63 registered. In 2012, Sam was able to retire at the age of 34 largely due to his investments that now generate roughly $200,000 a year in passive income. He spends time playing tennis, hanging out with family, consulting for leading fintech companies, and writing online to help others achieve financial freedom sooner, rather than later.
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